A government official observes that there has been a short-run increase in the price level. The increase in the price level could have been caused by:
A. a positive demand shock that increased GDP.
B. a positive supply shock that increased GDP.
C. a negative supply shock that decreased GDP.
D. a negative demand shock that decreased GDP.
Answer: A. a positive demand shock that increased GDP.
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The WTO's Doha Development Agenda is only considering market access issues in agriculture, such as tariffs and quotas, because export subsidies and production subsidies are considered less harmful and have not been part of the GATT or WTO agenda
Indicate whether the statement is true or false
Assume that you purchased a $1,000 perpetual bond and the interest rate on that bond declined from 5 percent to 2 percent. Thus,
a. the bond price increased by $1,500. b. you could sell this bond at a capital gain. c. if this was anticipated, the speculative demand for money fell. d. All of the above e. None of the above
If there is an improvement in technology that affects only Aggregate Supply and a nation's wealth falls due to a sagging stock market, then:
a. Price index falls, and the change in real GDP is uncertain. b. The change in price index is uncertain, and real GDP rises. c. The change in price index is uncertain, and real GDP falls. d. Neither the price index nor real GDP changes. e. Price index rises, and real GDP rises.
In the United States, union wages are about ______ percent higher than nonunion wages.
a. 1 b. 5 c. 15 d. 50